John Wood of Telos Corporation provides an inside look into the Virginia Cyber Security Commission, established by Gov. Terry McAuliffe in 2014.

Shortly after taking office in 2014, Gov. Terry McAuliffe signed an Executive Order establishing the Virginia Cyber Security Commission “to bring public and private sector experts together to make recommendations on how to make Virginia the national leader in cyber security.” It was my privilege to serve as a member of the Virginia Cyber Security Commission for the past two years, and I want to commend my fellow commissioners for their contributions, particularly Co-Chairs Richard Clarke and Secretary of Technology Karen Jackson, as well as our executive director, Rear Adm. Bob Day (Ret.). With the Commission’s two-year authority ending this spring, it’s a good time to look back on what was accomplished and to see what’s next.

Being on the Commission was an eye-opener in many ways. The Commonwealth faces numerous and evolving challenges in the battle to secure state and local government networks, and to help protect the private sector and citizens of Virginia. I was incredibly impressed with how open and honest our discussions were as we explored many complex issues. This includes not only commissioners but the Governor’s appointees and other state employees who were party to our discussions – they were remarkably candid with us about the serious threats Virginia faces in cyber space and what actions are needed. We heard from and worked with representatives from state and federal law enforcement, the Virginia chief information officer, and other state government information security professionals. It was refreshing to hear such blunt assessments of our vulnerabilities – there was no “bureaucratic” caution, probably because the threat is so real and so immediate.

The Commission served to shine a bright light on the challenges facing Virginia. We made a number of recommendations that led to subsequent actions by the Governor and General Assembly, improving Virginia’s cyber security posture. Moreover, our activities have better positioned Virginia’s cyber security sector to be a vibrant national leader. These results are consistent with the Governor’s desire to “grow this key industry, keep Virginia’s cyber assets safe and create new, good jobs here in the Commonwealth.”

I urge everyone to read the report issued last summer by the Commission. It notes some of the recommendations that were already accepted by the Governor and adopted by the General Assembly, such as new laws to help prosecute cyber crime and put in place other policies to better protect Virginians. More importantly, the report raises a number of issues that require further work. The effort must continue – there is much to be done, and Virginia’s public and private sectors must continuously work together to illuminate the changing threats we face and to swiftly take appropriate actions to address them.

It was gratifying to see how easy it is to get things done when people work together to find consensus. The Commission explored problems and made recommendations, and the Governor and General Assembly took action. That’s the way government is supposed to work.

At the same time, I saw how difficult it is to get things accomplished when competing agendas battle for the same limited pool of resources. That was my biggest disappointment. In our report, we identified a real need for dedicated funding to promote collaborative cyber security research and development between the higher education community and private sector. That course was endorsed by the members of the General Assembly’s own Joint Commission on Technology & Science (JCOTS), which recommended $5 million to fund this effort. But this bi-partisan recommendation was set aside in Richmond, at least for now, because there were simply too many R&D agendas fighting for the same pool of money and attention. I am hopeful the Governor and General Assembly will return to this because I firmly believe, as do many of my fellow Commissioners and the members of JCOTS, that collaborative R&D will be a key element in our drive to grow the industry and make Virginia THE leader in cyber security.

One final note: cyber security does not recognize man-made, political boundaries. In that light, we in the technology sector should be looking at where other companies and other states are making investments (like in R&D), and see where we might do the same. Similarly, I hope the Commission’s work will set an example for other states, and help to chart a path for Gov. McAuliffe to pursue greater cooperation among the states. I know he is interested in making intrastate and interstate cyber security a major focus during his upcoming term as chairman of the National Governors Association, and Virginia’s cyber security leaders in the private sector should support his efforts in any way we can.

Kristin D’Amore of Dovel Technologies provides a look into how Virginia is supporting student innovation, an essential asset to the Commonwealth’s economy.

New businesses account for nearly all net new job creation and almost 20 percent of gross job creation as well as being responsible for a disproportionate share of innovative activity in the United States.* There is an enormous amount of entrepreneurial activity occurring at institutions of higher learning throughout the country, and Virginia is taking strides to strengthen student innovation on its campuses. On April 14, 2016, Governor Terry McAuliffe signed into law legislation that directs the Boards of Visitors of public colleges and universities to adopt intellectual property (IP) policies that are supportive of student entrepreneurship. The legislation, which was sponsored by Del. Charniele Herring, was supported by NVTC and a broad coalition of higher education and business community organizations across Virginia.

The legislation reduces some barriers to entry for student entrepreneurs by clarifying existing university IP policies to specify the conditions under which institutions of higher education own intellectual property as opposed to student ownership. Current policies at some institutions of higher education create uncertainty about IP ownership, which discourages students from launching new ventures, starting businesses, or commercializing research based on their own ideas. The bill encourages a campus culture that supports entrepreneurship and motivates Virginia’s universities to be hubs of creativity and innovation with the potential to drive regional economic growth through research commercialization and new business formation.

The issue of student entrepreneurship and IP rights was raised by the Governor’s Council on Youth Entrepreneurship, which was formed in August 2015 to study and recommend ways to support young business owners and innovators in the Commonwealth. The group is comprised of leaders in higher education, business, innovators and entrepreneurs. As a member of the Council, I was pleased to see an early win for young entrepreneurs and students across Virginia.

Increased student innovation and promoting IP commercialization and new patents by students is critical to growing Virginia’s economy. Statistics from the Council on Virginia’s Future show that although Virginia’s rate of patent formation has improved in recent years, it is still well below the U.S. average. Furthermore, Virginia universities generated 1.94 startups per one million residents in 2013, measurably below the national rate of 2.38 startups and ranking the Commonwealth 27th in the country.

The Council on Youth Entrepreneurship is continuing its efforts assessing resources and opportunities in Virginia for young entrepreneurs and will be presenting additional recommendations to the Governor later this year. The Council will make additional recommendations on areas including financial incentives for business formation, improving regulatory processes for entrepreneurs, strengthening academic programs for student innovators in K – 12 and higher education, and marketing the assets of Virginia’s education system to students, faculty, and business leaders across the country. The Council’s efforts are focused on providing the next generation of entrepreneurs and innovators a solid foundation from which to launch their ideas, ultimately leading to further growth in the economy.

* According to the Kauffman Foundation, the largest foundation in the world devoted to entrepreneurship.

Kristin D’Amore is Director, Market Development and Strategy at Dovel Technologies and a member of Governor McAuliffe’s Council on Youth Entrepreneurship.

This week on NVTC’s blog, J. Michael Schweder, president of AT&T Mid-Atlantic, shares information on HB 1386, a measure that gives businesses and employees the ability to focus on responding quickly and efficiently during a state of emergency. AT&T is an NVTC member company.

When disaster strikes, AT&T and other companies send resources and personnel from other states to affected areas on a temporary basis, expediting efforts to clean up, restore, and repair damaged buildings, equipment, and property.
In such situations, businesses and employees can be hampered by an often slow and burdensome process of ensuring that they are in compliance with the regulatory, tax, and licensing laws of the state that needs assistance.
During declared states of emergency, the primary focus for companies is keeping customers connected and to do so safely and efficiently. Gov. Terry McAuliffe recently signed HB 1386, a measure that eliminates these obstacles and gives businesses and employees the ability to focus on responding quickly and efficiently to the needs of the Commonwealth and its citizens.
The new law eliminates any requirement for an out-of-state business or employee to register, file, and/or remit state or local taxes, or be subject to any state licensing or registration requirements, for a set period of time. Businesses and employees still will be responsible for payment of state and local sales taxes on all purchases, including food and lodging, while in the Commonwealth to address the emergency. And, employees will be responsible for all taxes owed to their home states.
The bill was the result of a bi-partisan effort. Del. Lee Ware, the patron of the bill in the House, Senator Walter Stosch, and Delegate Terry Kilgore, were integral to the successful passage of this important measure.
Virginia is the 13th state in the nation to offer this kind of flexibility to employees and their companies who help a state recover from the effects of declared emergencies.